Economic Growth across Space and Time: subprovincial Evidence from Mainland China
Abstract
We present a new composite leading indicator of economic activity in mainland China, estimated using a dynamic factor model. Our leading indicator is constructed from three series: exports, a real estate climate index, and the Shanghai Stock Exchange index. These series are found to share a common, unobservable element from which our indicator can be identified. This indicator is then incorporated into out-of-sample one-step-ahead forecasts of Chinese GDP growth. Recursive out-of-sample accuracy tests indicate that the small scale factor model approach leads to successful representation of the sample data and provides an appropriate tool for forecasting Chinese business conditions.Download Info
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Paper provided by Hamburg University, Department of Economics in its series Quantitative Macroeconomics Working Papers with number 20710.Length:
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:ham:qmwops:20710
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Keywords: Regional Economic Growth; China;Other versions of this item:
- Curran, Declan & Funke, Michael & Wang, Jue, 2007. "Economic growth across space and time: subprovincial evidence from Mainland China," BOFIT Discussion Papers 21/2007, Bank of Finland, Institute for Economies in Transition.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Michael Funke & Hao Yu, 2009.
"Economic Growth Across Chinese Provinces: In Search of Innovation-Driven Gains,"
Quantitative Macroeconomics Working Papers
20909, Hamburg University, Department of Economics.
- Funke, Michael & Yu, Hao, 2009. "Economic growth across Chinese provinces: in search of innovation-driven gains," BOFIT Discussion Papers 10/2009, Bank of Finland, Institute for Economies in Transition.
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